Iran Says It Can Live Without Oil Money

Although it’s not known what “Plan B” would be, and being that oil revenues make up half of the government funding (as the article points out), a plausible guess would be on the exporting of nuclear energy since that progam is quite large and developed by now. Only time will tell.

Iran says it may stop exporting oil if international sanctions against it are intensified, adding that it has a contingency plan for running the country without oil revenues.

According to Reuters, Iranian Oil Minister Rostam Ghassemi told reporters in Dubai on Tuesday October 23: “If sanctions intensify, we will stop exporting oil.”

“We have prepared a plan to run the country without any oil revenues,” he added. “So far to date, we haven’t had any serious problems, but if the sanctions were to be renewed we would go for ‘Plan B’.”

Ghassemi told reporters: “If you continue to add to the sanctions we (will) cut our oil exports to the world… We are hopeful that this doesn’t happen, because citizens will suffer. We don’t want to see European and U.S. citizens suffer.” He intimated that a complete halt to Iranian oil exports would drive up the price of oil.

The Oil Minister did not give any details on how the country would operate with oil revenues. Reuters report indicates that oil exports constitute half of Iranian government revenues and 80 percent of Iran’s exports.

Ghassemi stressed: “Iran has been facing U.S. sanctions for 30 years while successfully managing its oil sector.”

Full article: Iran Says It Can Live Without Oil Money (Eurasia Review)

2 responses to “Iran Says It Can Live Without Oil Money

  1. If Iran drastically reduces its oil production, as well as coordinating some oil exports from allies, it could quickly raise the barrel price above $300. Of course it would keep secretly suppling China. This would bring the West to its knees. Also, putting the blame on Israel and the United States.

    These Iranians are very rational. They have nothing to lose and a lot to gain.